If the Government Wants to Close a GDP Gap, It

question 51

Multiple Choice

If the government wants to close a GDP gap, it should:

• A)borrow funds from the public by issuing bonds.
• B)lower taxes and raise government spending.
• C)lower government spending on social security.
• D)raise both direct and indirect tax rates.
• E)adopt contractionary fiscal policies to control inflation.

---

Definitions:

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's powers and marking one of the deadliest conflicts in history.

International Council

An assembly or committee formed by members from various countries aimed at addressing and solving global issues.

Jane Addams

An American social reformer and pacifist, co-founder of Chicago's Hull House, and the first American woman to receive the Nobel Peace Prize.